Reinsurance Group of America Incorporated 5.75% Fixed-To-Floating Rate Subordinated Debentures due 2056 (RZB)

FairStock Score: 56/100 — STEADY

Key Financials

Strengths

• Generates $1.8 billion in annual free cash flow (20.3% yield on market cap)
• Conservative balance sheet with debt-to-equity of just 0.42, providing financial flexibility

Concerns

• Weak Piotroski F-Score of 0/9 suggests deteriorating financial quality across multiple dimensions

AI Analysis

Reinsurance Group of America Incorporated 5.75% Fixed-To-Floating Rate Subordinated Debentures due 2056 is a small-cap financial services company valued at $8.9 billion. The business generates $23.7 billion in annual revenue with a 2.0% net margin and $1.8 billion in free cash flow. From a quality standpoint, Reinsurance shows weak Piotroski F-Score of 0/9 signaling deteriorating fundamentals and modest 10% ROE. On valuation, the stock is deeply undervalued on a P/E basis at 4.1x, with offers a 85% margin of safety vs Graham Number of $168. Our composite FairStock Score of 56/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $1.8 billion in annual free cash flow (20.3% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the financial services space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer